Kakaku.com (OTCMKTS:KKKUF – Get Rating) and Elisa Oyj (OTCMKTS:ELMUF – Get Rating) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Dividends
Kakaku.com pays an annual dividend of $9.96 per share and has a dividend yield of 74.6%. Elisa Oyj pays an annual dividend of $1.30 per share and has a dividend yield of 2.1%. Kakaku.com pays out 23.1% of its earnings in the form of a dividend. Elisa Oyj pays out 91.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kakaku.com is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Kakaku.com and Elisa Oyj’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Kakaku.com | N/A | N/A | N/A |
Elisa Oyj | N/A | N/A | N/A |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Kakaku.com | 0 | 2 | 1 | 0 | 2.33 |
Elisa Oyj | 3 | 2 | 3 | 0 | 2.00 |
Elisa Oyj has a consensus target price of $56.90, suggesting a potential downside of 8.89%. Given Elisa Oyj’s higher possible upside, analysts clearly believe Elisa Oyj is more favorable than Kakaku.com.
Institutional & Insider Ownership
24.1% of Kakaku.com shares are owned by institutional investors. Comparatively, 19.5% of Elisa Oyj shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Kakaku.com and Elisa Oyj’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Kakaku.com | N/A | N/A | N/A | $43.08 | 0.31 |
Elisa Oyj | N/A | N/A | N/A | $1.42 | 44.12 |
Kakaku.com is trading at a lower price-to-earnings ratio than Elisa Oyj, indicating that it is currently the more affordable of the two stocks.
Summary
Kakaku.com beats Elisa Oyj on 5 of the 8 factors compared between the two stocks.
About Kakaku.com
Kakaku.com, Inc. engages in the provision of Internet services through its website Kakaku.com. It operates through the following segments: Internet Media and Finance. The Internet Media segment includes customer support services, advertising services, sales support, information provision, Tabelog business, 4Travel business, and others, such as external media articles. The Finance segment includes the foreign exchange margin trading and insurance services. It also provides the price margins of products and other information of merchandise and services that include personal computers, home electronics, broadband and mobile phone telecommunication fees, food, drink, interiors and cosmetics. The company was founded on December 11, 1997 and is headquartered in Tokyo, Japan.
About Elisa Oyj
Elisa Oyj engages in the provision of telecommunications, information and communications technology, and online services. It operates through the Consumer Customers and Corporate Customers segments. The Consumer Customers segment includes telecommunications and communications services, such as fixed and mobile subscriptions with supplementary digital services, cable-television subscriptions, Elisa Viihde entertainment service, and Elisa Kirja e-reading service. The Corporate Customers segment offers corporate and public administration organizations with services such as information technology (IT) and communication solutions for the digital environment as well as fixed and mobile subscriptions. The company was founded by Daniel Johannes Waden in 1882 and is headquartered in Helsinki, Finland.
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